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News clips on bicycle costs (rising) and availability (scarce, but you knew that)

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News clips on bicycle costs (rising) and availability (scarce, but you knew that)

Old 06-27-20, 05:35 AM
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PeaceByJesus
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News clips on bicycle costs (rising) and availability (scarce, but you knew that)

Sep 9, 2019: U.S. Bicycle Industry - Statistics & Facts The U.S. market for bicycles is estimated to be sized at around six billion U.S. dollars. Although U.S.-based manufacturers like Trek, Specialized or Redline are popular bike brands in the United States, the majority of products are manufactured abroad: Around 99 percent of bicycles sold in the United States are imported from China and Taiwan.

February 26, 2019: How U.S. bike companies are steering around Trump's China tariffs. (Reuters) - U.S.-based bicycle manufacturer Kent International has found a way around President Donald Trump’s tariffs - by shifting production out of China...The company now plans to make bike frames in Cambodia while continuing to buy about half the components it will attach to those frames from producers in China. The resulting bicycles can enter the United States tariff-free because of U.S. rules that generally allow products to be designated as made-in-Cambodia as long as 35 percent of their costs for parts and labor are derived from that country...

The bike industry plays a small role in what experts call the biggest shake-up in cross-border supply chains since China joined the World Trade Organization in 2001.

For many companies, tariffs proved the deciding factor in moves already under consideration because of rising labor costs in China. Three decades ago, when Kamler first offshored Kent’s production, labor in China cost him 20 percent less than in the United States. That gap has narrowed to 5 percent...Another major brand, Specialized Bicycle Components, has moved production from China to Cambodia, Vietnam and Taiwan, expanding its existing Southeast Asia operations..

In the 1970s, U.S.-based firms made more than 15 million bicycles annually, compared to fewer than 500,000 now. And 90% of U.S. bike imports currently come from China.

May 17, 2019: China accounted for 94% of the 15.3 million bikes imported to the U.S. in 2017 . Higher tariffs mean more pain for the already struggling industry.

Jun 18, 2019: World’s Top Bicycle Maker Says the Era of ‘Made in China’ Is Over . Giant Manufacturing Co. saw the writing on the wall early on. The world’s biggest bicycle maker started moving production of U.S.-bound orders out of its China facilities to its home base in Taiwan as soon as it heard Donald Trump threaten tariff action in September.”

May 16, 2020: Intensifying U.S.-China Tensions Could Hurt American Bike Supply . NPR's Michel Martin speaks with Morgan Lommele, director of state and local policy for People for Bikes, about how the coronavirus pandemic and trade hostilities are affecting bike sellers...MORGAN LOMMELE: We've been serving our members. And we're seeing families, individuals riding bikes in droves more than we've seen over the last 20 years. So by number of measures, bicycle-riding is up about 50% from the same period of time last year. And there's a direct link to the pandemic in understanding why people are riding bikes more often....

Stores are doing really well...they are having a really hard time keeping up with demand for service....We're seeing a mini-bike boom that's unprecedented... The supply chain is already compromised because products coming out of China have faced a 10- to 12-week delay. So that puts pressure on bike suppliers who import into the U.S. So what we've done is we asked the federal government to relieve tariffs on products so that it gives U.S. bike manufacturers a little bit more of a cushion to deal with delays in the supply chain and also this increased demand.

May 18, 2020: Thinking of buying a bike? Get ready for a long wait. Some bicycle shops in Brooklyn are selling twice as many bikes as usual and drawing blocklong lines of customers. A chain of shops in Phoenix is selling three times the number of bikes it typically does. A retailer in Washington, D.C., sold all its entry-level bikes by the end of April and has fielded more preorders than ever in its 50-year history. In March, nationwide sales of bicycles, equipment and repair services nearly doubled compared with the same period last year, according to the N.P.D. Group, a market research company. Sales of commuter and fitness bikes in the same month increased 66 percent, leisure bikes jumped 121 percent, children’s bikes went up 59 percent and electric bikes rose 85 percent.

10-Jun-2020: Demand booms for kids bicycles in China amid COVID-19 lockdown . Zhu Ping has never imagined that she would have to go through so much trouble to buy a bicycle for her 13-year-old son. She went to a major sport equipment store near her home in Beijing five times and waited for weeks. But as soon as childern's bicycles hit the shelf, they were snatched away in minutes by other eager parents...The coronavirus lockdown has driven up another shopping craze in China: bicycles for children. With schools closed amid the epidemic and kids trapped at home getting bored, riding a bicycle seems to be the perfect choice for them to stay active while maintaining social distances..Forever Bicycle, one of China's renowned bicycle brands has witnessed a 30 percent increase in both sales and profits from January to May this year.

June 2020: China made cheap cycles and parts routed through Bangladesh and Sri Lanka are killing the Heroes and Atlases of India ...The imports of cycles from China that are routed through Bangladesh, Sri Lanka into India have been bleeding dry the Indian cycle industry. COVID-19 was just the last straw that broke the camel’s back. Chinese-made bicycles and bicycle parts are flooding in from neighboring countries in Indian markets, which is making the local producers fight till the last dime for the market share....The import duty in Bangladesh and Sri Lanka is 25 percent and 30 percent respectively. High import duty helps Bangladesh and Sri Lanka to protect their bicycle industry. However, India has zero import duty which allows a lucrative and economically profitable environment for the Chinese.

June 13, 2020: The Supply Side: Bicycle supplier sees unprecedented demand amid COVID-19 . Who knew adult bicycles would be one of the hottest selling items as consumers look for ways to entertain themselves amid the COVID-19 pandemic?Arnold Kamler, CEO of New Jersey-based Kent Bicycles and one of Walmart’s main suppliers, said never in his life has he seen such demand. Kent Bicycles continues to work to get its products to major retailers, but there are now delays of two to three weeks. Walmart president and CEO Doug McMillon said during the retailer’s recent earnings call that adult bicycle racks in U.S. stores were empty. He said as more consumers received stimulus checks, they purchased bicycles, and the demand has been unprecedented....

He said with more bicycles being purchased online, Kent has also become a direct-to-consumer business for Walmart.com, and all products coming from China are now being sent through West Coast ports..But the shipping time from Shanghai to Charleston, S.C., is 33 days, which is too long when trying to rebuild inventory and fill current orders...“I negotiated a good deal with a major bike supplier in China [that] is not only a manufacturing partner but also a financial partner. We will import 3 million bicycles annually, so the U.S. manufacturing is still a small percentage of the total business,” Kamler said in 2014.


Last edited by PeaceByJesus; 06-29-20 at 04:37 PM. Reason: more info
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Old 06-28-20, 04:18 AM
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Definitely seen prices inflated in the UK, also affecting prices of used bikes on ebay too! it's a seller's market for sure
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Old 06-28-20, 08:49 AM
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We are getting calls from customers asking if we have tubes in stock. Apparently the other 6 shops in town are running out. We are getting low on popular sizes, but have yet to run out. Shift levers are also in short supply and the 7, 8, and 9 speed shifters are out of stock at the suppliers. Some Microshift stuff is available, but not Shimano.
;
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Old 06-28-20, 09:21 AM
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I have a 2019 CAAD 12 that I bought at the LBS. I love this bike. But, I saw some reviews of the new CAAD 13 and, coincidentally, a friend is getting into biking and is desperate for a road bike. So, I thought I should look into a CAAD 13...maybe sell him my bike and go for it. Called the LBS and was told that there isn't a CAAD 13 to be had anywhere in the US. And, few Cannondales at all. The bike boom is here.
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Old 06-28-20, 10:26 AM
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Five years from now the used market will be phenomenal as bike boom bikes sit in garages unridden.

John
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Old 06-28-20, 01:08 PM
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Originally Posted by bruce19 View Post
I have a 2019 CAAD 12 that I bought at the LBS. I love this bike. But, I saw some reviews of the new CAAD 13 and, coincidentally, a friend is getting into biking and is desperate for a road bike. So, I thought I should look into a CAAD 13...maybe sell him my bike and go for it. Called the LBS and was told that there isn't a CAAD 13 to be had anywhere in the US. And, few Cannondales at all. The bike boom is here.
That sounds a little off, my brother just picked up a Cannondale Synapse 105 from REI last week. Ordered it the week before and his shop noted they had just gotten in ~40 bikes. Granted, this is only one shop and maybe he got super lucky. This is near Greenville SC.
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Old 06-28-20, 01:18 PM
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Ubie, your friend got lucky. Both Cdale shops in town are out of anything close to 1000 bucks and are unable to get anything from Cdale. The shortage is real. Parts shortage is real.
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Old 06-28-20, 02:07 PM
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bicycles is a huge commodity if people can't get gas for their cars.

I see it as nothing more than the same as a run on toilet paper. That and people were bored with sitting at home.
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Old 06-28-20, 04:36 PM
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If we survive this pandemic, I think there are going to be a lot of lightly used bikes for sale at a good price.
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Old 06-28-20, 05:07 PM
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The shortage is real. I had no idea this was an issue when I started researching a new bike. When I zeroed in on what I wanted, surprise! Very little inventory nationwide. I just took delivery of my Domane yesterday. Last one at the time in my size and color. I had the shop owner order it without waiting. His shop is still empty of new bikes. Hit and miss on what is available at any particular time.
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Old 06-29-20, 02:23 AM
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Between stimulus checks, and bicycling being one of the few ‘approved’ outdoor activities; coupled with the usual Spring Surge, no surprise demand went up.
Add in supply-side interruptions, whether politically or pandemically induced, and yeah, shortage.
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Old 06-29-20, 04:12 AM
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Originally Posted by TiHabanero View Post
We are getting calls from customers asking if we have tubes in stock. Apparently the other 6 shops in town are running out. We are getting low on popular sizes, but have yet to run out. Shift levers are also in short supply and the 7, 8, and 9 speed shifters are out of stock at the suppliers. Some Microshift stuff is available, but not Shimano.
;
Well, there are cheapo Shimano shifters on Ebay. And tubes at places like the Bike Shop . However, 2 years ago I was able to purchase (for out free labor inner city bike repair) Derailleur and shifters for as low as under $6.00, and last year V-brake pads as low as $0.99 a pair (now $12.00 for 4 pairs) and hardy lock-on handle grips for under $2.00, and 24 (good) 50mm patches for about $2.00, but btwn COVID-19, tariffs, and shipping changes then prices for most items like these have risen at least 100%. Still can get some tires cheap though, thank God.

Last edited by PeaceByJesus; 06-29-20 at 07:38 AM.
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Old 06-29-20, 06:29 AM
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For those of us in the know...

... this short term bike boom represents quite the opportunity. We know how and where to get parts, and are able to operate deftly within the seams, where there are few competitors. It's been quite a bit of fun. Much like it was six or eight years ago. Yay!
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Old 06-29-20, 09:32 AM
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So far, I'd only experienced this huge upswing in cycling in the form of a gazillion new riders on the road, some of whom are trying to ride 2-up AND maintain a 6 foot distance on roads with car traffic, meaning you have to go nearly to the centerline to pass them. But yesterday, I wanted to pick up a few things at the local bike store. This used to be a simple thing - drop by the bike store on a Sunday. Not happening! There was a line of 10 people at the door waiting to get in!

Generally, if I can, I like to buy at least some stuff locally, but clearly, they don't need my money right now!
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Old 06-29-20, 01:45 PM
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Anecdotal, but I noticed that tires have been disappearing from websites (at least wide 700c tires, that's what I've been looking for). Friend says outdoor stuff like paddleboards/etc. have seen a huge rise demand as well.
Edit: bottle cages in short supply on Amazon

Last edited by autonomy; 06-30-20 at 07:56 AM.
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Old 07-05-20, 08:43 PM
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Originally Posted by autonomy View Post
Edit: bottle cages in short supply on Amazon
But certainly not on Ebay, which is where I usually would go for low cost items (seat covers, brake parts, etc.), but not for tires or tubes.
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Old 07-06-20, 06:51 AM
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Originally Posted by PeaceByJesus View Post
But certainly not on Ebay, which is where I usually would go for low cost items (seat covers, brake parts, etc.), but not for tires or tubes.
Sure, but pretty much everything in your link is shipped directly from China (i.e. not available from the States) which would likely take a while.
Granted, you are sorting by lowest price first, but if you sort by 'best match', the pickings aren't exactly plentiful, at least for my tastes.
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